WORLD BANK SUPPORTS ARMENIA IN IMPROVING PUBLIC SECTOR PERFORMANCE
Noyan Tapan
March 17, 2010
WASHINGTON, MARCH 17, NOYAN TAPAN-ARMENIANS TODAY. The World Bank’s
Board of Executive Directors approved a US million credit for the
Second Public Sector Modernization Project (PSMP II) for Armenia on
March 16. The project will assist the Government of Armenia in its
efforts to improve the quality of public services by introducing a
performance-based pay system and a code of conduct for civil servants,
and by enhancing public access to all available government information.
"Strengthening governance through improved public service delivery is
among the priorities for Bank support", said Asad Alam, World Bank
Regional Director for the South Caucasus. According to Asad Alam
though some improvements have been made in the area of governance
and anti-corruption, important challenges remain, including in the
enforcement of conflict of interest legislation pertaining to public
officials.
According to the report of the World Bank’s office in Yerevan, in
the new economic reality brought about by the global economic crisis,
public administration reform has grown even more important, as getting
better value from public expenditures and improving public services
have become a necessity. Ensuring that public service provisions do
not suffer at a time of tighter fiscal constraints requires focused
efforts to strengthen performance management.
According to Kathy Lalazaryan, head of the World Bank team designing
the project, to improve public service delivery, enhancing technology
is not enough by itself. The most crucial and difficult part is
changing behavior and organizational culture. She noted that it’s
important to have efficient public services throughout the recovery
because more than ever families are counting on the services the
government provides.
According to report of the World Bank’s office in Yerevan, this
demanding agenda will be tackled by the PSMP II, as despite progress in
civil service reform under the ongoing PSMP I, policy formulation and
implementation functions need additional strengthening. The Project
will also help build capacity for performance management, and will
support the Government’s efforts to bolster the rules regulating
conflict of interest in public service and improve enforcement.
PSMP II has three main components. It supports: (I) the design of
organizational structures in pilot institutions and improvement of
the management of business processes by streamlining and coordinating
functions; (II) making human resource management more effective,
and enhancing public service ethics and staff performance systems;
and (III) complementing and enhancing the electronic governance and
automation systems to make them accessible to the general public,
aiming for better service delivery, and more transparency and
efficiency.
The IBRD Flexible loan has a maturity of 25 years and a grace period
of 10 years included.
Since joining the World Bank in 1992 and IDA in 1993, the commitments
to Armenia total approximately US$ 1, 318, 7 million.